§ Mr. Corfield
I beg to move, in page 46, line 35, at the end to insert:(6) For the purpose of assessing any compensation under this section, in so far as that compensation is in respect of loss or damage consisting of depreciation of the value of an interest in land, the rules set out in section 5 of the Land Compensation Act 1961 shall, so far as applicable and subject to any necessary modifications, have effect as they have effect for the purpose of assessing compensation for the compulsory acquisition of an interest in land.(7) Where the interest in land, in respect of which any compensation falls to be assessed in accordance with the last preceding subsection, is subject to a mortgage—This Clause makes provision for the payment of compensation for loss or damage where a licence is revoked or varied unless, of course, in the case of a licence to abstract water there has been no abstraction for seven years.
- (a) the compensation shall be assessed as if the interest were not subject to the mortgage;
- (b) a claim for the compensation may be made by any mortgagee of the interest, but without prejudice to the making of a claim by the person entitled to the interest;
- (c) no such compensation shall be payable in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage); and
- (d) any such compensation which is pay able in respect of the interest which is subject to the mortgage shall be paid to the mortgagee, or, if there is more than one mortgagee, to the first mortgagee, and shall in either case be applied by him as if it were proceeds of safe.
The object of these Amendments is to make it clear that in applying the Land Compensation Act, 1961, account is taken of the fact that one is compensating for a loss in value and not for the actual acquisition of the land itself. New subsection (6), therefore, provides broadly that compensation for depreciation will be the difference between the value of the interests concerned before and after the revocation or variation of the licence. The new subsection (7) follows very closely similar provisions in the Town and Country Planning Acts and the whole object is to remove any doubt where interest is subject to a mortgage.
§ Amendment agreed to.